Gurgaon real estate market in revival mode
Gurgaon real estate is the champion of the overall real estate market in India. Its growth is significant to the Indian economy. As real estate market is a major contributor of GDP (Gross Domestic Product) and a generator of employment opportunities. But due to many reforms brought by the Modi led BJP Government after coming to power the real estate market is facing a slowdown from the past two years. Demonetisation, the implementation of GST (Goods and Services Tax) and RERA (Real Estate Regulatory Act 2016) deteriorated the growth of this sector. The residential real estate market in India became passive. Due to the cash crunch that people in every state of India witnessed due to demonetization led to the less transaction activity in the real estate market until the middle of 2016. Even, the new supply was also restricted. Buyers nearly escaped from the realty market for some time. But demonetization continued to haunt the builders and developers as it slowed down the construction activity, dwindled sales, cautious buyer sentiments and high levels of unsold inventories worsened the state of the realty market.
With the strict norms set under RERA (Real Estate Regulatory Act), most of the time of the time of the builders is spent in getting approvals, which result in project delays. Although there were few projects in the third quarter of the last year. Most of the developers were focussed on offloading existing inventory. They aimed at completing ongoing projects and abstained from launching new projects. It was a result of declining confidence among buyers and builders due to a lot of project delays. A situation of confusion that came into being due to the implementation of the RERA (Real Estate Regulatory Act) led to a low activity on the transaction front during the first half of the year 2017.
One positive thing that remained intact in the time of distress was a robust demand in the office market. Delhi NCR (National Capital Region) recorded around two million square feet of the office space absorption from April 2017 to June 2017. This led to robust growth in the micro-market in Gurgaon. Most preferred locations were IT and SEZ Spaces. 50 percent of the leasing activity in Delhi NCR was contributed by Golf Course Road, DLF Cyber City and NH-8 (National Highway 8). This promising trend in the office space stabilized the real estate market. It was the main contributor in bringing the realty sector back to normal as it helped in getting rid of the situation of disorder and confusion that arose due to the implementation of RERA. It also brought about clarity regarding RERA. Now, the Gurgaon real estate sector is getting back to normal after a double attack of demonetization and RERA (Real Estate Regulatory Act) which resulted in months of low activity to continue its previous trend of growth and burnish with its supremacy again.
It seems that Gurgaon real estate sector will witness months of an upward trend in 2018. Months of happiness and hope are waiting for the developers and builders after a long struggle of two years. According to the experts, many factors would play a key role in order to revive the real estate sector in Gurgaon. These are some of them:
- Availability of Residential Option
As it is known to everyone that Gurgaon always had a lot of space and ample opportunities on the location front for residential complexes, so they would be important in determining the growth of realty sector in Gurgaon.
- Improvement in Structure and Connectivity
Many artistically designed beautiful residential complexes by leading developers and builders can be spotted in every nook and corner of Gurgaon. It attracts homebuyers to the corporate hub, which is Gurgaon. Its connectivity with Delhi is added advantage to improve its position in realty market as ease of connectivity with the capital, Delhi has always been on the top in the list of expectations from their dream home.
- Civic Amenities
Civic Amenities always play an important role in determining the demand for residential complexes among buyers. Due to increased availability of civic amenities nearby residential complexes. Many investors are lured to invest in these. The location of the residential complexes amongst prestigious educational institutions and corporate offices provides the impetus for the growth. Its connectivity with Golf Course Road, NH-8 (National Highway Road -8), Dwarka Expressway attracts a lot of homebuyers. And with these ultra-modern residential complexes, with ample facilities like party halls, clubhouse, sports club, yoga rooms, swimming pool, etc. in the complex itself makes them distinct and hence, the demand in real estate market for these residential complexes increase to a greater level.
Affordable housing acted like a blessing for the real estate market when it was facing dwindling sales and fluctuating pricing trends. Gurgaon has a lot to offer on the residential development front. Many investors and NRI’s are attracted to the Gurgaon, which predicts the rise of real estate market in near future. Although institutional investors continued to remain bullish on the market due to the commercial office segment.
Most of the demand and supply for residential property has been concentrated in the mid-end to high-end segments. The future seems to have a bulk of opportunities for an end user in the real estate market. The peremptory development of the infrastructure led to the creation of more and more residential options in the realty market. With the announcement of the Union Budget 2018 on Feb.1, 2018 by the Finance Minister Arun Jaitley, builders and developers can at last feel optimistic regarding the opportunities in the real estate market in the coming months. In fact, it is anticipated by some that the demand would be concentrated in the high-end and mid-end segments. Micro-markets would also offer much in the following months. Hence, it seems that after days of darkness, a ray of light has finally entered the real estate market in 2018. Finally, real estate developers and builders can take a sigh of relief as future seems bright on the market front. This would lead to the revival of the housing market in Gurgaon.